RBI special dollar window for IOC, BPCL, HPCL from October 12
Why in the news
The Reserve Bank of India announced a special dollar window for the three public sector oil marketing companies (OMCs) to reduce pressure on the rupee in the spot foreign exchange market.
Key facts
- Beneficiaries: Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL).
- Start date: October 12, 2026; the window stays open until further notice.
- Coverage: RBI will supply the entire daily dollar requirement of the three OMCs.
- Mechanism: RBI sells US dollars to the OMCs via designated banks, so their large import-linked demand no longer hits the spot market.
- RBI said the step followed its review of current currency and financial market conditions.
| Indicator | Level |
|---|---|
| Rupee close, October 9, 2026 | Rs 96.73 per dollar |
| Rupee record low (May) | Rs 96.96 per dollar |
| Forex reserves, week ended October 2 | $734.60 billion (down $12.95 billion) |
| Record forex reserves (September) | $785.70 billion |
About the context
The October 2 reading was the fourth straight weekly fall in reserves, leaving them about $51 billion below the September peak. Business Today noted that meeting OMC demand directly from reserves could drain them further. On October 10, RBI also tightened rules on rupee forex derivatives, including a 20% Foreign Exchange Risk Reserve on large contracts.
Exam angle
- Know the three OMCs covered and the October 12 start date.
- The window takes OMC dollar demand out of the spot market, supporting the rupee.
- Track the numbers: rupee record low Rs 96.96, reserves $734.60 billion, record $785.70 billion.